At 14:00 GMT, the US Dollar strengthened against peer currencies and other assets. The surge occurred due to the better than expected US Institute for Supply Management Purchasing Managers Index survey results. The index beat the market expectations of 52.1 by being revealed to be 52.8. The better results indicate that the US Federal Reserve can continue to tighten
This morning, at 09:00 GMT, the higher than expected Euro Zone Consumer Price Index Estimate caused a reversal of an ongoing decline of the Euro against peer currencies. The markets took in high inflation as a reason for the European Central Bank to be more hawkish and reduce the supply of the Euro more than previously planned. Euro are CPI came
At 12:30 GMT, the US Dollar surged against all other assets and currencies. The surge was caused by the better than forecast US monthly employment data. In July, US Average Hourly Earnings month on month increased by 0.5% instead of 0.3%. Non-farm Employment Change showed a growth of 528,000, compared to forecast 250,000. Meanwhile, the US Unemployment Rate is at
At 12:00 GMT on August 4, the Bank of England hiked its Official Bank rate by 0.50% from 1.25% up to 1.75%. In addition, the central bank has published its Monetary Policy Summary. The Pound lost value due to the details of the monetary policy summary. Namely, one of the committee members did not vote for the 0.50% rate hike. Instead,
On August 2, the Reserve Bank of Australia hiked its Cash Rate from 1.35% up to 1.85%. The 0.50% hike was expected, as most central banks have been tightening monetary policy to fight inflation that has been rampant in the aftermath of the coronavirus stimulus. In addition, the central bank published its Rate Statement. In general, the central bank wants to
On July 28, at 12:30 GMT, the United States Bureau of Economic Analysis published the US quarterly Advance GDP data for the second quarter of 2022. The market consensus for the GDP was at 0.4% growth. The actual data revealed a decline of -0.9%. In April, the Advance GDP revealed a -1.4% decline for the first quarter of 2022. A
On July 27, the US Federal Reserve hiked its Federal Funds Rate by 0.75%, by bringing the Federal Funds Rate up to 2.50%. The markets expected the 0.75% hike, despite speculations of a possible 1.00% hike. In addition, note the released Federal Open Market Committee Statement, which consists of the reasoning for the rate hike. Afterwards, at 18:30 GMT, the head
During the early hours of Friday's European trading hours, one by one the Euro Zone country Purchasing Managers Index survey results were published. In general, data came in worse than expected. French Services PMI came in at 52.1 instead of forecast 52.6 and Manufacturing PMI was at 49.6 instead of 51.1. German indices came in both at 49.2, compared
On July 21, the European Central Bank unexpectedly hiked its base interest rate by 0.50% instead of the expected 0.25%. Moreover, the central bank stated that it intends to possible do additional rate hikes in order to normalize rates. However, most market participants took attention to the fact that a new Transmission Protection Instrument is set to be revealed. The
On July 5, the Reserve Bank of Australia hiked its base interest rate by 50 base points, as the rate was increased from 0.85% up to 1.35%. However, the hike was expected by the market consensus forecasts. Previously, in June and May the central bank was hiking more than the market participants expected. Meanwhile, the RBA revealed that inflation in Australia
US month on month inflation was revealed to be at 1.00% instead of the forecast 0.70%. Meanwhile, core inflation is at 0.60% instead of 0.50%. The US Dollar reacted to the news with a spike upwards. The spike was attributed to the fact that the US Federal Reserve's efforts to stop inflation have failed and more steeper rate hikes are
On June 9, the European Central Bank published its interest rates and Monetary Policy Statement. In general, as expected, the central bank kept its interest rate's unchanged. Meanwhile, the central bank revealed that it would hike its interest rates by 0.25% in July. Moreover, the ECB is set to end its Asset Purchase Program on July 1. However, the monetary
The release of the monthly US employment data at 12:30 GMT caused a surge of the US Dollar's value. The EUR/USD reacted to the news with a 30 base point decline over a span of 15 minutes. The US Average Hourly Earnings increased by 0.3%, compared to the expected 0.4%. Non-farm Employment Change was revealed to be at 390,000 and
On June 1, the Bank of Canada hiked its Overnight Cash Rate from 1.00% up to 1.50%. In addition, the bank stated that it would continue its monetary tightening program. The initial announcement caused a spike in the value of the Canadian Dollar. However, it almost immediately was reversed, as the markets spotted that in the official statement the Canadian
On May 25, the Reserve Bank of New Zealand hiked its Official Cash Rate from 1.50% up to 2.00%. The hike was already expected by the markets. The announcement strengthened the New Zealand Dollar. Meanwhile, the bank revealed that inflation is above the bank's targets, despite its recent efforts and rate hikes, some of which were higher than expected. Quoting the statement:
On Tuesday, at 08:30 GMT, the GBP/USD plummeted because of the publication of the Markit Flash Manufacturing and Services Purchasing Managers Index survey results. The Pound lost value due to the revelation that the Services PMI was at 51.8 instead of the forecast 56.9. The GBP/USD reacted to the news by dropping 103 base points or 0.82%.
Next week, notable data releases will start on Tuesday, at 12:30 GMT. At that time, the US Retail Sales and Core Retail Sales data will be published. The data is set to reveal whether the US consumer had continued to make purchases in the market. On Wednesday, at 06:00 GMT, the UK Consumer Price Index data will reveal how inflation had
On Wednesday, the United States Labour Statistics Bureau released the monthly US Consumer Price Index and Core Consumer Price Index data for April. The markets expected the data for clues in regards to the effectiveness of the first US Federal Reserve Rate hike done on March 15. At 12:30 GMT, the CPI and Core CPI came in at 0.3%
During the week, most attention will be put on the US Consumer Price Index and Producer Price Index data. The data sets are expected to reveal the inflation in the United States in the aftermath of the first Federal Reserve Rate hike done in March. Consumer Price Index and Core Consumer Price Index number will be published on Wednesday at
At 12:30 GMT, the USD/CAD was treading near the day's low levels at 1.2812, as the United States and Canada published their respective employment statistics. In general, the US data surprised and caused a strengthening of the USD, and the Canadian data revealed the situation to be worse than forecast, which beat down the value of the Canadian Dollar. The
On May 5th, the Bank of England hiked its interest rate from 0.75% up to 1.00%, which is the highest level in 13 years. In addition, the bank revealed how the monetary policy makers voted on the rate hike. Namely, six of the committee voted for a 0.25% hike, but three members wanted a 0.50% hike that would set the
On May 4, the US Federal Reserve released its Federal Open Market Committee Statement and hiked the Federal Funds Rate from 0.50% up to 1.00%. The rate hike was expected by the markets, as the members of the central bank had revealed their plans for May. Meanwhile, the markets looked at the FOMC Statement for clues about the future policy
All attention during the week will be on the US Federal Reserve Rate Hike on Wednesday at 18:00 GMT. The central bank rate is forecast by the markets to be increased by 0.50%. However, a larger or smaller than expected increase could shock the markets by impacting the US Dollar's value. In addition, at 18:30 GMT, the Federal Reserve will
On April 28, the Bank of Japan released its Outlook Report and Monetary Policy Statement. In general, the bank is set to continue its monetary easing policy, which is weakening the value of the Yen. Namely, the bank is keeping its bank rates at previous levels and 10-year Japanese government bond yield target is set to be the same. Meanwhile, the